Commodity Futures trading is one of the most popular and competitive business field that anyone can participate on it. Before starting business it is vital to have sound knowledge of business model for your success in trading. Inconsistent and variable trading may liquidate your money account or give vital frustations . Having a simple trading plan can give you a successful lead. Please make a business model as outlined below.
1. BUSINESS OF YOUR CHOICE
First of all, find the market of commodity you want to trade.Every commodity trading have its own kind of risk factor. First decide whether you want to trade with Gold, Silver, Oil, Copper or Grains. Start with demo software to learn real time trading environment . It is always a good choice to start with low volatile trading. Some traders will like to take long positions. Some traders prefer to take a chance from lucrative item from the market.
2. Size of Business Account
This is famous query among all new starters. Everyone ask us money that is required to start commodity trading. In one word there is not fixed amount but technically you can start trading with smallest account size of 15000 NPR . We advise to you allocate at least 1-3 lakhs to counter possible risk management system. Those who can afford normally start with 3-5 Lakhs for trading and backup amount. Joint Venture trading is also in practice. Contact our business experts to guide you for your investment portfolio.
Too many variable holdings is not good all the time.One item trading deal should not be a loss of whole account. Stop loss cannot prevent loss all the time. Today's lowest rate can be tomorrow's highest rate. It is better to follow the market trend. Trading after risk managment analysis of cash value is good for success. Risk Managment portfolio can be different among traders. Our experts can scan your trading plan and advise you more.
4.Commodity ABC Business Facts
You shoud always know start and end dates of contracts. Security Deposit, increase/drecrease cash point value, margin calls, and trading months are another basic ABC of startng business. Most of the these are known as "contract specifications".